Tri-way Industries, Ltd. (“TW”) is an independent Hong Kong based corporation in which Sino Agro Food, Inc. holds a 36.6% ownership interest. SIAF carved-out its aquaculture businesses to reform Tri-way, which had previously been a wholly owned entity of Sino Agro Food and which owned a limited set of assets.

In addition to assets already held in Aquafarm 1 (“AF1”), TW acquired the assets of Aquafarms 2, 3, 4 and 5 from their respective owners / investors, including SIAF, as well as rights to technology licensed from Capital Award, a wholly owned subsidiary of SIAF. The carve-out was completed and announced in a press release on March 1, 2017.

Tri-way’s enterprise value was assessed at US$340.6M, with Sino Agro Food, Inc. retaining and/or acquiring holdings of US$124.7M (of US$340.6M), which includes a provision for repayment of debt owed to SIAF.

Tri-way Industries now owns and operates:

Aquafarm 1, formerly Jiangmen City A Power Fishery Development Co. (Fish Farm 1), in which SIAF had a 75% ownership interest through the former Tri-way

Aquafarm 2, formerly Enping City Bi Tao A Power Prawn Culture Development Co (Prawn Farm 1), which was an unincorporated joint venture

Aquafarm 3, formerly Zhongshan A Power Prawn Culture Farms Development Co (Prawn Farm 2), which was an unincorporated joint venture

Aquafarm 4, formerly Prawn Farm 4, the first phase of the new Zhongshan Aquaculture project, and

Aquafarm 5, formerly Prawn Farm 5, the second phase of the new Zhongshan Aquaculture project, scheduled to begin development in 2017

The aquaculture operations each have the ability to grow a variety of seafood species, including prawns. This was one reason to change their designation to“aquafarms.” The proportion of production will vary from quarter to quarter. Aquafarm 4 began production in the fourth quarter of 2016. Through the first nine months of 2016 AF1-3 produced 8,999 metric tons: sleepy cod (321), Giant Mottled Eel (265), Prawns (1,844), and Finfish (6,569), generating revenue from the sale of goods of $57.5M and gross profits of $13.1M.